US labour market surges as ADP reports +200,000 jobs in Nov.

The first +200,000 print in the ADP since March became a reality today as payroll data processing company ADP released its November report, which shows that payrolls rose by 206,000 in the private sector. And to add to the positive vibes the October number was revised up by 20,000 to 130,000.

Digging deeper, the gains in November came primarily from the small and medium-sized companies which added 110,000 and 84,000, respectively, while the large companies added 12,000. Looking at various sectors service-producing jobs added 178,000 while manufacturing and goods-producing added 7,000 and 28,000, respectively; both the highest readings since June.

The ADP Employment report was not the only good news today as Nonfarm Productivity showed a gain of 2.3 percent quarter-on-quarter (QoQ) annualised while Unit Labor Costs dropped 2.5 percent, suggesting that margin squeezes are still not pressuring US companies, broadly speaking. The neighbour to the north, Canada, also produced the goods as its GDP rose 0.2 percent in September meaning that the economy accelerated to 3 percent year-on-year.